KSH HOLDINGS LIMITED. Corporate Presentation 22 November 2018

Transcription

1 KSH HOLDINGS LIMITED Corporate Presentation 22 November 2018

2 DISCLAIMER This presentation and the information contained herein does not constitute or form any part of any offer or invitation to sell or issue, or any solicitation of any offer to subscribe for or purchase any securities of KSH Holdings Limited (the Company ) or any of its subsidiaries, associated companies or joint ventures (collectively with the Company, the Group ) in any jurisdiction or an inducement to enter into investment activity and nothing contained herein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. This presentation is being furnished to you solely for your information and may not be reproduced or redistributed to any other person or published, in whole or in part, for any purpose. No representation or warranty, express or implied, of any nature is given as to, and no reliance should be placed on, the fairness, correctness, accuracy or completeness of the information or opinions contained herein. This presentation is being communicated only to persons who have professional experience in matters relating to investments and to persons to whom it may be lawful to communicate it to (all such persons being referred to as "relevant persons"). This presentation is only directed at relevant persons. Solicitations resulting from this presentation will only be responded to if the person concerned is a relevant person. Other persons should not rely or act upon this presentation or any of its contents. The information and opinions in this presentation are provided as at the date of this presentation and are subject to change without notice. No assurance is made as to the accuracy of this presentation and it may be incomplete or condensed and it may not contain all material information concerning the Company or the Group. The information in this presentation is not financial product advice and does not take into consideration the investment objectives, financial situation or particular needs of any particular person. Any forward-looking statement in this presentation is accurate only as of the date hereof, and there is no obligation to update, modify or amend this communication or to otherwise notify the recipient if information, opinions, assumptions, projections, forecasts or estimates set forth therein, changes or subsequently becomes inaccurate. None of the Company, or any member of the Group, or any of their respective affiliates, officers, employees, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of or reliance on the information or opinions contained in this presentation. No offering of the Company s securities will be registered under the U.S. Securities Act of 1933, as amended, or with any securities regulatory authority of any state or other jurisdiction of the United States. Subject to certain exceptions, the Company s securities may not be offered, sold or delivered within the United States or to, or for the account or benefit of, any U.S. person (as defined in Regulation S under the U.S. Securities Act). Neither this presentation nor any copy of such presentation may be taken or transmitted into the United States or distributed, directly or indirectly, in the United States. The information presented here is not an offer for sale within the United States of any securities of the Company. The distribution of this presentation in certain jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about, and observe, any such restrictions. By attending this presentation or by accepting this document, you will be taken to have represented, warranted and undertaken that: (i) you are a relevant person (as defined above); (ii) you are not a person located in the United States or any agent, fiduciary or other intermediary acting on a nondiscretionary basis for a principal giving instructions from within the United States or any U.S. person; (iii) you are bound by the foregoing limitations; and (iv) that any investment in any securities of the Company will be made solely on the basis of the disclosure document prepared by the Company and not on the basis of this presentation. Any failure to comply with these restrictions may constitute a limitation of applicable securities law. 2

3 PRESENTATION OUTLINE 1. Corporate Overview 2. Financial Highlights 3. Construction 4. Property Development 5. Property Investment 6. Outlook & Strategies

4 CORPORATE OVERVIEW CORPORATE OVERVIEW

5 CORPORATE OVERVIEW A well-established construction, property development and property investment group Incorporated in 1979 and listed on the SGX Mainboard since 8 February 2007 Construction Over 39 years of established track record across various sectors including residential, commercial, industrial, hotels, institutions, infrastructure, etc Strong order book, balance sheet; low gearing and receivables risk BCA A1 Grade (CW01 General Building): Ability to tender for public construction projects of unlimited value BCA A2 Grade (CW02 civil engineering): Ability to tender for public projects for values up to S$85M Projects performed well in CONQUAS, a standard assessment system on the quality of building projects Won BCA Construction Excellence Awards for the construction of Fullerton Bay Hotel, NUS University Town s Educational Resource Centre and Madison Residences Property Development 18 development projects of residential, mixed development, office and commercial launched in Singapore with a total of 6,525 units and area of 5.53 million sqft for the last 10 years Successful development in Beijing, PRC on residential development - 靓景明居. First 3 phases fully sold and 4 th phase Sequoia Mansion ( 红衫公馆 ) almost fully sold Township development in Gaobeidian, PRC Property Investment 69% of Tianjin Tianxing Riverfront Square ( 天星河畔广场 ) in Tianjin, PRC 4 high-end luxurious residential units in Singapore 11 investments of hotel property overseas currently, of which seven are in operation Plan to increase investment in hotel properties 5

6 GEOGRAPHICAL FOOTPRINT UK England: Mixed used development in Central Leeds (including Hampton by Hilton); IBIS Bradford Hotel; LUMA Concept Hotel; IBIS Gloucester Hotel; Holiday Inn Express Manchester City Centre Scotland: Hotel Indigo Glasgow Singapore A main contractor for both public and private construction sectors Strong construction track record of projects across residential, commercial, mixed-development, institutional sectors, including Fullerton Bay Hotel, One 15 Marina Club, Suntec City, Bedok Integrated Complex, Singapore Chinese Cultural Centre, amongst others Developed many successful residential, commercial and mixeduse projects such as NEWest, KAP & KAP residences, Hexacube & Trio Japan Expanded footprint with investment in 2 hotels in Hokkaido (Super Hotel Sapporo) and Tokyo (Smile Hotel Asakusa) UK MALAYSIA Malaysia A main contractor for the private sector PRC JAPAN SINGAPORE AUSTRALIA PRC Amassed strong network and market knowledge since entry in 2001 Tianjin: Mixed-use development, Tianjin Riverfront Square ( 天星河畔 广场 ) that contributes healthy recurring income Beijing: Mixed-development, Liang Jing Ming Ju Sequoia Mansion ( 靓 景明居四期 - 红衫公馆 ) Gaobeidian: Co-developing largescale township project, Gaobeidian New Town ( 高碑店新城上东新区 ), a satellite city near Beijing earmarked by government for development Australia Brisbane: Entered Australia property market with consortium of investors to co-develop a mixed-use asset in popular tourist hotspot, Fortitude valley, Brisbane, Australia 6

7 FINANCIAL HIGHLIGHTS

8 FINANCIAL HIGHLIGHTS Group Revenue (S$ m) Project Revenue Rental income from investment properties FY2014 FY2015 FY2016 FY2017 FY2018 1HFY2018 1HFY2019 Earnings Per Share (SGD Cents) 1HFY2019 revenue recorded a 42.5% increase mainly due to a 45.4% increase in revenue from construction business to S$73.1 million for the 1st half of Financial Year 2019 ( 1HFY2019 ) Other income increased by S$0.8 million to S$5.2 million in 1HFY2019 mainly due to increase in interest income from loans to associates and joint ventures A higher net profit excluding noncontrolling interests of S$10.4 million was registered in 1HFY2019, as compared to S$10.1 million in the 1st half of Financial Year 2018 ( 1HFY2018 ) 0 FY2014 FY2015 FY2016 FY2017 FY2018 1HFY2018 1HFY2019 8

9 S$ Million HEALTHY CONSTRUCTION ORDER BOOK Construction Gross Margin 9.4% 10.8% 15.1% 21.6% 23.8% 1HFY % FY2014 FY2015 FY2016 FY2017 FY Sep-18 Order book remains healthy at over S$553 million as at 30 September 2018 Construction gross margin remains impressive at 19.0% for 1HFY2019 A good mix of public and private projects in the existing order book 9

10 EARNINGS HIGHLIGHTS 70 Profit Attributable to Shareholders (S$ m) FY2014 FY2015 FY2016 FY2017 FY2018 1HFY2018 1HFY

11 HEALTHY BALANCE SHEET S$ m 31 Mar Mar Mar Mar Sep 2018 Total Assets Total Liabilities Net Tangible Assets (Attributable to Shareholders) NTA Per Share (Cents) NTA CAGR (%) (Compounded Annual Growth Rate) 10.18% 11

12 TOTAL ASSETS Construction Property Development Property Investment Total (S$ m) (S$ m) (S$ m) (S$ m) Singapore PRC Other Overseas Total

13 HEALTHY DEBT COVERAGE & LOW GEARING S$ m 31 Mar Mar Mar Mar Sep 2018 Total Borrowing & Debts Fixed Deposit, Cash & Bank Balances Net Cash (Debt) (1.1) (46.7) (52.0) Net Cash (Debt) to Equity (0.004) (0.14) (0.15) Debt to Total Assets

14 SGD Cents DIVIDENDS Total Dividends: 4.00 S$11.4m S$15.3m S$14.8m S$12.5m S$5.7m FY2015 FY2016 FY2017 FY2018 1HFY2019 Interim Final Special 14

15 CONSTRUCTION

16 CONSTRUCTION Order book remains healthy at S$553 million as at 30 September 2018 Maintain good mix of private and public sector projects at approximately 64% and 36% respectively Project Name Project Type Sector Riverfront Residences Residential Private 4-Storey Building With Basement Car Park Institutional Public 5-Storey Integrated Development With Car Park Institutional Public Park Place Residences Residential Private Research Building at National University of Singapore Institutional Public Cable Entry Shaft Civil Engineering Public Bus Interchange Infrastructure Public Neighbourhood Police Post Institutional Public 16

17 PROPERTY DEVELOPMENT

18 PROPERTY DEVELOPMENT 18 development projects (residential, mixed development, office and commercial) launched in Singapore for the last 10 years. This includes the three residential projects launched recently Riverfront Residences and Park Colonial Total units launched for sale in Singapore 6,525 units Total saleable area: 5.53 million sq ft Total units sold in Singapore (as at 30 September 2018) 4,528 units Total area: 3.81 million sq ft Most of the property developments launched prior to the current financial year FY2019 have been either fully sold or substantially sold The residential units of Sequoia Mansion launched in People s Republic of China are almost fully sold Attributable share of progress billings amounting to S$441.2 million as at 30 September

19 SALES STATUS OVERVIEW Three newly launched property developments were well-received by the market Sale status as at 30 September 2018 based on Options signed by buyers are as follows: Serangoon Riverfront Residences Total Units % Units Sold Group Stake Group s Attributable Share of Total Units 1,057 18% 7.5 % 79 1,478 50% 35.0 % 517 Park Colonial % 20.0 % 161 Total 3, Group s Average Units Sold 50% More than 1,600 units sold for the 3 projects above as at 14 November

20 PROPERTY DEVELOPMENT Singapore Recent Launch SERANGOON Location Facilities 99-year residential development Situated at Serangoon Avenue, a serene enclave that s just minutes away from various amenities and recreational facilities Sits on a massive 296,913 sq ft piece of land with a plot ratio of 2.8 Houses 1,052 residential units and five retail shops Units include 1- to 4- bedrooms and townhouses Status Launched in June

21 SERANGOON Sales launch in June 2018 Buyers balloting for units 21

22 PROPERTY DEVELOPMENT Singapore Recent Launch RIVERFRONT RESIDENCES Location Facilities 99-year leasehold project Located at Hougang Avenue 7, near several shopping malls such as Hougang Mall, Heartland Mall and Hougang 1 Comprises a total of 1,472 units. It offers a plethora of choices from 1- to 5- bedroom units, including strata terraces Situated on the Rio Casa site, a former HUDC estate, residents of Riverfront Residences can look forward to having an extensive variety of full condo facilities to suit their every need due to its relatively large land area Status Launched in July

23 RIVERFRONT RESIDENCES Sales launch in July 2018 Over 7000 visited Riverfront residences 23

24 PROPERTY DEVELOPMENT PORTFOLIO Singapore Recent Launch PARK COLONIAL Location 99-year leasehold high rise luxury condominium. Located behind Avon Park, along Upper Serangoon Road/Woodleigh Lane and near to Woodleigh MRT station along the North East Line Facilities With a total of about 734 units, the development is situated within the Bidadari URA Masterplan estate Residents can expect a wide variety of entertainment, F&B options and excellent public transport connectivity Status Launched in July

25 PARK COLONIAL Sales launch in July 2018 very warm response at the sales launch 25

26 PROPERTY DEVELOPMENT Project To Be Launched REZI 24 Group s Stake 48% Tenure Location Expected Launch Expected Completion Freehold (odd) Lorong 24, Geylang 2019 ~2022 No. of Units (Estimated, subject to finalisation) 26 ~110 Project Brief Proposed block of 8-storey residential flats Featured facilities include sky garden, swimming pool and multistorey carpark, subject to necessary approvals from relevant authorities An abundance of urban amenities within the easy reach

27 PROPERTY DEVELOPMENT PORTFOLIO (PRC) People s Republic of China GAOBEIDIAN PROJECT SINO-SINGAPORE HEALTH CITY Group s Stake 22.5% Location Total Land Size Project Brief Gaobeidian (82 km from Beijing), the PRC Hectares (8,000 mu) Township Development with 50,000 households Stage 1: Mountain Climbing Training Centre & Outdoor Sports Centre Township o Area size: 1.97 million sqm (2,956 mu) o Phase 1: I. Target to develop approximately 5,540 high-end and mass-market residential units with saleable area of 615,527 sqm II. Target to develop commercial development of approximately 27,500 sqm in saleable area o 1 st batch of residential units under Phase 1 will be launched at a desirable timing when there is better market clarity on the development of current US-China trade war Stage 2: Green Health Food Safety Testing Centre Township 27

28 PROPERTY DEVELOPMENT PORTFOLIO (PRC) People s Republic of China GAOBEIDIAN PROJECT SINO-SINGAPORE HEALTH CITY Location: Near the recently announced Xiongan New Special Economic Zone, Gaobeidian is one of the satellite cities surrounding Beijing earmarked by the government for development as part of decentralisation strategy Situated next to the Beijing-Shijiazhuang Expressway and the Beijing- Shijiazhuang High-speed Rail passenger line, 82 km from Beijing City (19 minutes to Beijing by high-speed rail) 68km North of Baoding of Hebei Province designated to be secondary capital of PRC, taking over part of the administrative function of Beijing Surrounded by rich agriculture production zones that supply to large domestic population 28

29 PROPERTY INVESTMENT

30 PROPERTY INVESTMENTS OVERVIEW The Group has 11 investments of hotel property overseas currently, of which seven are in operation and generating recurring income Project Name Location Status LUMA Concept Hotel IBIS Gloucester Hotel IBIS Bradford Hotel Glenthorne Road, London, England, UK Gloucester, Gloucestershire, England, UK Bradford, West Yorkshire, England, UK Holiday Inn Express Manchester City Centre Hotel Indigo Glasgow Smile Hotel Asakusa Super Hotel Sapporo Hampton by Hilton Day Inns Liverpool Dry Bar Boutique Hotel Wickham Manchester City, England, UK Glasgow, Scotland, UK Tokyo, Japan Chuo, Hokkaido, Japan Leeds, England, UK Liverpool, England, UK Manchester City, England, UK Wickham, Fortitude Valley, Brisbane, Australia 30 In Operation In Progress

31 PROPERTY INVESTMENTS (JAPAN) Super Hotel Sapporo Group s Stake 10% Location Chuo, Hokkaido, Japan No. of Rooms 164 rooms; 66 residential units; 4 retail units 15-storey, 164-room hotel building and 14-storey residential building Well-located within the entertainment and shopping district in the Chuo ward, near to Sapporo City s CBD Walking distance to subway stations, two stops away from the main transit hub, Sapporo Station Smile Hotel Asakusa Group s Stake 30% Location Tokyo, Japan No. of Rooms bedroom hotel strategically located in a bustling district popular with tourists and locals for numerous Shinto festivals Close to Asakusa metro/train station 31

32 PROPERTY INVESTMENTS (UK) LUMA Concept Hotel Group s Stake 10% Location No. of Rooms 89 Glenthorne Road, London, England Located in Hammersmith within a short walk of Hammersmith Apollo Within 3 km of Westfield London Shopping Centre, near to Natural History Museum and Craven Cottage Stadium This 89-room, 3-star hotel welcomes guests with conveniences like free breakfast, free in-room WiFi, and dry cleaning/laundry services IBIS Hotel Gloucester Group s Stake 15% Location No. of Rooms 127 Gloucester, England 127-room hotel east of Gloucester s urban centre Two hours drive from London City and an hour away from the popular Bicester Shopping Outlet Near to the headquarters of several major British businesses well positioned to benefit from year round corporate patronage IBIS Budget Bradford Group s Stake 15% Location No. of Rooms 86 Bradford, West Yorkshire, England 86-room hotel close to Bradford s city centre 49 miles away from Manchester, commonly regarded as the capital of North England 20-minute drive away from the international airport Bradford poised to benefit from an urban regeneration programme that is expected to raise visitors interest significantly 32

33 PROPERTY INVESTMENTS (UK) Holiday Inn Express Manchester City Centre Group s Stake 30% Location Manchester City, England No. of Rooms storey, 147-room hotel in Manchester, a global art and cultural city The hotel is strategically-located nearby renowned shopping street and railway station for easy connection to Greater Manchester and UK Poised to attract both leisure and business travelers Hotel Indigo Glasgow Group s Stake 20% Location No. of Rooms 94 Glasgow, Scotland 5-storey, 94-room hotel that is well placed for Glasgow s CBD, tourist attractions and premium shopping districts and a short 15-minute drive away from the airport It is a few minutes walk away from the Glasgow Central station and the various underground stations connecting its location to the rest of the city 33

34 PROPERTY INVESTMENTS (UK) Dry Bar Boutique Hotel Group s Stake 17.5% Location Manchester City, England An entertainment venue in Manchester City, to be redeveloped into a boutique hotel Four-storey terraced building with one basement level, and a total gross internal floor area of approximately 20,713 sq ft Planning permission was granted in 2015 to convert the upper floors of the building into a stylish new hotel Hampton by Hilton Group s Stake 17.5% Location Leeds, England Construction commenced in 2016 to build a 192-bedroom hotel, the first of a series of development projects planned for the site An agreement has been entered with international hotel chain Hilton to operate this hotel under the brand s new-generation limited service badge, Hampton by Hilton The hotel is part of the first phase of a new, landmark regeneration project being developed by the consortium that is currently under construction. Operations are expected to commence in late

35 PROPERTY INVESTMENT (CHINA) Name of Project Tianjin Tianxing Riverfront Square ( 天星河畔广场 ) Group s Stake 69% Location Tianjin, the PRC Total Lettable Area 37,033 sqm Tenure ~50 years from 29 November 1993 Occupancy 80% (As at 30 September 2018) 35

36 OUTLOOK & STRATEGIES

37 HEALTHY BUSINESS OUTLOOK According to the forecast and actual construction demand data released by BCA in November 2018, the total value of construction projects up to September 2018 reached S$20.9 billion Public sector construction demand projected to maintain at the earlier forecast of S$16.0 billion to S$19.0 billion Private sector construction demand is forecasted to reach between S$10.0 billion and S$12.0 billion Prices of private residential properties increased by 0.5% in 3rd Quarter 2018, compared with 3.4% increase in the previous quarter Developers sold 3,012 private residential units (excluding ECs) in 3rd Quarter 2018, compared with 2,366 units sold the previous quarter Sources: Forecast and actual construction demand (to date) Building and Construction Authority, 12 November 2018 Release of 3rd Quarter 2018 real estate statistics Urban Redevelopment Authority, 26 October

38 STRATEGIES & OPPORTUNITIES CONSTRUCTION 1. Continue to aggressively tender for public and private projects with emphasis on the former while protecting margins PROPERTY DEVELOPMENT 1. Continue to prudently seek opportunities in Singapore while deepening existing footprint in overseas markets PROPERTY INVESTMENT 1. Continue to seek investment opportunities in hotel properties overseas together with JV partners 2. Capitalise on Group s strong track record and BCA A1 grade to tender for public projects of unlimited value, riding on government impetus 3. Leverage on the Group s healthy balance sheet and low receivables risk as competitive advantage 2. Pursue overseas projects with reputable partners with extensive local knowledge, network and expertise 3. Expand geographical footprint in new markets with favourable property market cycle together with JV partners 2. Expand geographical footprint in new markets with favourable property market cycle together with JV partners 38

39 THANK YOU